As the gasoline prices stopped rising and home values stopped falling, consumers in America are more confident with their Economy.
According to Peter Kretzmer, a senior economist, “a little bit of the gloom is lifting”. Stable housing sector has reduced the burden on economy although it will take some time to limp back to normal.
The German market showed a considerable decline in consumer confidence even as the dollar reached a peak since the month of February. Treasury in New York saw a rise in the benchmark ten year note yields by 0.02 percent and the Stock Index of the Standard and Poor’s 500 Stock Index rose 0.5 percent.
The housing market showed some signs of looking up even as the decline rate of 6.8 percent from the first quarter reduced to 2.3 percent in this quarter. This is a positive sign as more consumers are looking to invest in properties in the following six months as statistics show. There is a moderation of price declines at the national level according to David Blitzer who is the chairman of the Index Committee at S&P.
More and more Americans are looking into resale property purchase as sales increased from a ten year low according to the Realtors Group. Commerce Department statistics show a rise in the new home sales to 515,000 in July from 503,000 in June.
In spite of the difficult credit conditions and a decline in construction of new properties, buyers seem to be heading back to the market, even though it is sure to take quite some time for the impact of the real estate slump to ease on the US Economy.
